Your work isn’t done once you’ve decided to offer a QSEHRA as your new health benefit. As with any health benefit, launching a QSEHRA requires some planning.
We’ve spoken with thousands of our customers about what they wish they had done before offering a QSEHRA.
This step-by-step guide is the result and walks you through all the decisions that need to be made to ensure a successful launch.
It may seem trivial, but the first step is to make sure you understand your motivations for offering a QSEHRA so you can measure success. Whatever your goals may be, knowing your priorities will help you design the benefit to meet those needs.
Here are some common goals employers are seeking to achieve with a QSEHRA:
One of the main benefits of using a QSEHRA is its simplicity. But simple doesn’t mean weak—you have plenty of ways to tailor the benefit to your needs. Here are some elements you can customize to make it a perfect fit:
The QSEHRA is subject to rules and regulations from the IRS, Department of Labor, and HIPAA. To comply with these regulations, you’ll need to prepare and generate the required paperwork: a plan document that covers all of the nitty-gritty legal details and an employee-facing Summary Plan Description, or SPD, that summarizes the plan document and makes it easy for your employees to understand.
Common ways you can do this include QSEHRA administration software, hiring a lawyer, or purchasing online templates. The one you choose will depend on your budget, timeline, and required level of customization.
You have options when it comes to QSEHRA administration. Each method varies in cost and the amount of work you’ll handle in-house vs. outsource. Choose the one that works for you:
Make sure you get this step right. You’re offering a QSEHRA as a benefit to your employees, but if they don’t understand how it works or see its value then it won’t be successful.
Here are some suggestions on how to talk to your employees about your QSEHRA:
Once your QSEHRA has launched, you’ll need to continue to follow up with your employees. Ask if they have questions about how to submit expenses and how they receive reimbursements, or which expenses are eligible for reimbursement. If you are using administration software, check to ensure they have signed up, logged in, and know how to use it.
This step may vary in length depending on your health benefits situation prior to offering a QSEHRA. For companies transitioning from not offering any health benefit or giving employees a taxable stipend for healthcare expenses, we’ve found that employees get the hang of their new benefit pretty quickly.
For those switching from a group health insurance plan, it can take a bit longer. Plan on a 60-90 day learning curve as employees adjust to the reimbursement model. If you use PeopleKeep, our customer service team is available to answer any questions and offer all the help your employees need.
Thinking of offering a QSEHRA but still have questions? Leave a comment below or email us at blog@peoplekeep.com.